Kerzner International Limited

Financial Main Page | IGHRM Main Page
Disclaimer:

International Guild of Hospitality & Restaurant Managers

Kerzner International Lim (NYSE:KZL)

Coral Towers
Paradise Island, Bahamas

Phone: (242) 363-6016
Fax: (242) 363-5401
Employees (last reported count): 6,200

Kerzner International Limited, formerly known as Sun International Hotels Ltd., is a developer and operator of premier destination casino resorts and luxury hotels. In its destination casino resort business, the Company owns and operates the Atlantis Paradise Island resort and casino complex located in The Bahamas. The Company also developed and received certain revenue from Mohegan Sun in Uncasville, Connecticut. In its luxury resort hotel business, the Company operates eight beach resorts at locations in Mauritius, Dubai, the Maldives and The Bahamas. Also, the Company is in the early stages of an Internet gaming venture, which was in the testing phase through the end of 2001, and commenced operations effective January 2002.

The Bahamas

Through certain Bahamian subsidiaries, the Company owns approximately 600 acres or almost 70% of Paradise Island, on some of which the Company owns and operates Atlantis, its flagship property. Atlantis is a 2,317-room, ocean-themed destination casino resort located on Paradise Island, The Bahamas. Atlantis features three interconnected hotel towers, the Royal Tower, the Coral Tower and the Beach Tower, all built around a seven-acre lagoon and a 34-acre marine environment that includes an open-air aquarium. Atlantis also features an entertainment complex containing approximately 1,000 slot machines and 80 table games, 17 restaurants, approximately 100,000 square feet of convention space, a sports center, over 30,000 square feet of high-end retail space and a 63-slip, full service marina. The Company also owns and operates the Ocean Club Resort, a high-end luxury resort hotel with 106 rooms and suites located on Paradise Island, as well as the Ocean Club Golf Course, a water plant, and other improvements on Paradise Island. The Company owns approximately 100 acres of undeveloped land, which is available for sale or development.

The Paradise Island operations compete with cruise ships and other hotels and resorts, on Paradise Island, New Providence, Grand Bahama Island and the neighboring Caribbean islands. The Nassau Marriott, its primary competitor in The Bahamas, is an 867-room resort and casino. The Company also competes with The Resort and Casino at Bahamia and Its Lucaya, both located on Grand Bahama Island.

Atlantic City

The Company sold Resorts Atlantic City on April 25, 2001. However, the Company continues to own approximately 13 acres of additional land available for development immediately adjacent to Resorts Atlantic City. This land is included in the Atlantic City Option and, effective April 25, 2001, is leased to Colony for a fee of $100,000 per month.

Connecticut

The Native American-themed Mohegan Sun is one of the premier casino gaming properties in the Northeast and one of the most profitable casinos in the United States. The property incorporates its historical Native American theme through unique architectural features and the use of natural design elements such as timber, stone and water. As a result of the expansion, the gaming area comprises approximately 296,000 square feet of gaming space and features more than 6,200 slot machines, 240 table games and 42 poker tables.

The Connecticut market is the fourth largest gaming market in the United States, with approximately 22 million adults within 150 miles of Mohegan Sun. Mohegan Sun and Foxwoods Resort and Casino (Foxwoods), at present are the only two casinos in the Connecticut market. The Oneida Nation operates a casino near Syracuse, New York and other Native American tribes in the states of New York, Rhode Island, Massachusetts and Connecticut are seeking approvals to establish gaming operations, which would further increase competition, particularly for day-trip patrons.

Indian Ocean Resorts

In Mauritius, the Company manages and owns interests in five beach resorts (Indian Ocean Resorts) including the 175-room Le Saint Geran Hotel, the 200-room Le Touessrok Hotel & Ile Aux Cerfs, the 248-room La Pirogue Hotel, the 333-room Le CoCo Beach and the 238-room Sugar Beach Resort Hotel.

In the Indian Ocean market, the Company primarily competes with other resorts on the islands in which it operates as well as other locations offering vacations to tourists from Europe, southern Africa and parts of Asia. Sun Resorts Limited owns five major hotels in Mauritius. In the luxury end of the Mauritian hotels market, Sun Resorts Limited owns two of the seven luxury hotels and offers a total of 375 of the approximately 1,000 rooms in Mauritius. Sun Resorts Limited faces more competition for the middle-market La Pirogue, Sugar Beach and Le CoCo Beach hotels.

Dubai

The Company entered into an agreement to manage the Royal Mirage Hotel in Dubai. The Royal Mirage Hotel is a luxury 258-room hotel built to resemble an Arabian fortress on Jumeira Beach in Dubai. Royal Mirage's 258 rooms account for over 10% of the beach rooms and have a distinctive local Arabian architecture and theme.

The premium leisure market in Dubai is mainly centered on the exclusive Jumeria Beach "golden mile", which currently is host to seven competing five star hotels. Each hotel has its own theme and particular leisure market niche.

Maldives

In July 2001, the Company entered into an agreement to manage Kanuhura. Kanuhura is a 120-room luxury resort located on Kanuhura Island in the Maldives, approximately 600 miles southwest of the southern tip of India. Effective August 1, 2001, the Company acquired a 25% ownership interest in Kanuhura.

In February 2001, the Company entered into an agreement with Boss Media AB to develop an Internet gaming software solution. On February 15, 2001, the Company and Station Casinos, Inc. (Station Casinos) entered into an agreement pursuant to which Station Casinos will purchase a 50% interest in SunOnline Limited, the Company's Internet gaming subsidiary.

The Company's indirect wholly owned subsidiary, Sun International Resorts, Inc. provides general and administrative support services, marketing services, travel reservations and wholesale tour services for the its Paradise Island operations. Through an indirect wholly owned subsidiary, the Company owns a tour operator company in France, Sun Vacances. Sun Vacances primarily services patrons in France, and offers reservations services for travel to the Indian Ocean Resorts, the Royal Mirage Hotel in Dubai and Kanuhura in the Maldives.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

IGHRM Main Page